CommSec morning market update2:22

THE Australian share market is lower because of disappointing housing figures and weak economic data out of Japan.

The market was down nearly 0.4 per cent in early afternoon trade, with banks and retail stocks the worst performers.

IG Markets analyst Evan Lucas said underwhelming figures from Japan, combined with weaker than expected local building approval numbers, were dragging the market lower. Japan's industrial output fell by 3.3 per cent in June, while approvals for the construction of new homes dropped 6.9 per cent across Australia.

He said investors were also sitting tight ahead of important data out of the US and China later this week.

"There's very, very cautious trading going on across the ASX particularly," he said. "Volumes at the moment are incredibly low."

Among the big four banks, ANZ was 18 cents lower at $29.46, Commonwealth Bank had dropped 18 cents to $73.68, NAB lost 16 cents to $31.00 and Westpac was two cents lower at $30.80.

Woolworths has announced a 4.3 per cent rise in annual sales to $59 billion, but the retail giant's shares were down 65 cents, or 1.9 per cent, at $33.12. The owner of rival Coles, Wesfarmers, was also lower, down 56 cents, or 1.38 per cent, at $39.97.

The mining sector fared better, with BHP up 20 cents at $34.75, and Rio Tinto was up 12 cents at $57.23.

KEY FACTS

* At 12.29pm AEST, the benchmark S&P/ASX200 index was down 19.5 points, or 0.39 per cent, lower at 5026.8 points.

* The broader All Ordinaries index was down 18.5 points, or 0.37 per cent, at 5009.6 points.

* On the ASX 24, the September share price index futures contract was off 25 points at 4985 points, with 12,210 contracts traded.

* National turnover at 10.34am AEST was 634.9 million securities worth $1.8 billion.